Why Cosmetic Brands will still Invest in Freebies during this Weak Economy ?

Why Cosmetic Brands will still Invest in Freebies during this Weak Economy ?

money investment in weak economy
Selling luxuries to women is not easy when women are used to putting themselves last — especially in a weak economy. By giving away their products, cosmetics companies are also telling women that, to paraphrase a slogan, they’re worth it — worth an extravagance, worth trying a new look, worth a gift. With purchase.
Giveaways, gifts with purchase, and loyalty programs (sometimes known as a free premium) were widely popular advertising techniques until about 20 years ago. But these freebies fell out of favor because of fraud, evolving trends, and a new stress on online data collection — except in the case of health and beauty products. 
 
The personal-care industry is one of few fields still using the appeal of “free” to attract consumers and increase the perceived value of their products — and unlike other marketers, they will not stop anytime soon.
 
Premiums are attractive because they change the value equation without changing the price of the product.
Personal-grooming items are marketed mostly to women. Because they are used by individual women and not their family or larger community, cosmetics are an expendable luxury — one of those things experts suggest cutting back on when budgets get tight. When cosmetics or skincare are advertised as “free,” it is an especially powerful deal because their status as indulgences increases their perceived value — making them much more enticing than everyday items like the free toasters once promised for opening yet another bank account.
There’s always this back and forth between the hard sell and the soft sell, and premiums come in during the hard sell eras. When the competition heats up, these things become more of a tool.” After soft-selling the jazz age, things were about to get competitive and stay that way for more than half a century.
 
It’s smarter to add value than merely discount. By discounting, one is lowering the perceived value of the brand.
Health and beauty companies, though, specialize in the lifestyles of women. Instead of abandoning free premiums, they kept on giving stuff out — and not just luxury brands. Beauty brands don’t just reward customers for their loyalty, though. They also give freebies as a way to attract new customers and create social media buzz.

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